Q. In the context of derivative instruments, which of the statements is/are correct about futures and options?

Select the correct answer using the codes given below:

1 only

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2 only

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Both 1 and 2

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Neither 1 nor 2

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Solution

The correct option is D Neither 1 nor 2
Explanation:

Statement 1 is incorrect. In options, the buyer has the right and not an obligation to buy a stock asset at a specific price at a future date.

Statement 2 is incorrect. In futures contracts, a buyer cannot refuse to buy a stock asset. He is obligated to adhere to the contract.

Note: Futures and options are derivatives that are traded in a share market. These are types of contracts signed between two parties for trading a stock asset at a predetermined price on a later date. These derivatives provide a trader/buyer a hedge against future risks associated with stock assets.

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Similar questions

Q. Arrange the different parts in the correct sequence to form a meaningful sentence/paragraph.
P : When the future date arrives, the bear expects
to buy in at a lower price to deliver the stock
that had been sold under the future contract
at a higher price.
Q : A market in which prices are falling or are
expected to fall is called by economists a bear
market.
R : Likewise, the term bear can be applied to a
person who expects stock prices to fall and
sells stock that he or she does not have for
delivery at a future date.
S : It is a designation commonly used in securities
markets and commodity markets and is the
opposite of a bull market.

Q. Identify which of the following statement is true and which is false.
L. The Court will not enforce a contract the terms of which are uncertain.
M. An agreement to agree in the future constitutes a binding contract.
N. A contract with an intention to contract is not a contract.

Select the correct answer from the options given below-

L M N

Q. Which of the following statements is/are correct regarding the similarities between the ‘Future contracts’ and ‘Forward contracts’ type derivative instruments?

Select the correct answer using the codes given below:

Q. 'फ्यूचर कॉन्ट्रैक्ट्स' और 'फॉरवर्ड कॉन्ट्रैक्ट्स' टाइप डेरिवेटिव इंस्ट्रूमेंट्स के बीच समानता के संबंध में निम्नलिखित कथनों में से कौन सा सही है/हैं?

ये भविष्य की एक निश्चित तिथि में किसी विशेष संपत्ति के क्रय या विक्रय हेतु पक्षकारों के बीच अनुबंध होते हैं।
ये मानकीकृत अनुबंध शर्तों का पालन करते हैं और इन्हें स्वनिर्धारित(customised) नहीं किया जा सकता है।
इनका व्यापार हमेशा संगठित स्टॉक एक्सचेंजों पर होता है।

निम्नलिखित कूट का प्रयोग कर सही उत्तर का चयन कीजिए:

1 only
केवल 1
3 only
केवल 3
1 and 2 only
केवल 1 और 2
1, 2 and 3
1, 2 और 3

Q. NSE launched the futures and options segment in ____ for various derivative instruments.

Q. Write a word or a term or phrase which can substitute of the following.
The highest price quoted by a buyer to buy a specified number of shares or stock at any given time.

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Q. In the context of derivative instruments, which of the statements is/are correct about futures and options? Select the correct answer using the codes given below:

Q. In the context of derivative instruments, which of the statements is/are correct about futures and options?

Select the correct answer using the codes given below: